These are very academic definition/logic. Reality is more nuanced. You don't, for example, really know how much profit you'll make from taking more or less inv

These are very academic definition/logic. Reality is more nuanced. You don't, for example, really know how much profit you'll make from taking more or less investment. It comes down to strategic foresight and belief.. IE not the most reliable guess. IE, a lot depends on the personality and goals of the CEO. In practical terms, the macro amount of money investors are trying to put in can play a much bigger role than comparing unknown futures. If investors are having trouble investing all the money they want to, the proposition gets more pleasant for the recipient. Less equity, and (more importantly irl, if not formally financial logic) better terms, less loss of control, more choice of investors. The "fiduciary duty" that obligates companies to make money is also over somewhat academic. IRL, this doesn't really cover strategic decisions. It covers stealing, nepotism, bed-feathering and other blatant shareholder abuse. You could never prosecute a CEO for passing on investment irl. TLDR: academics formalize these decisions in a clean, whiteboard model of the world. In the whiteboard rule, where the complexity of reality doesn't exist, choices don't really exist either. The CEO just evaluates the npv of taking investment, providing free lunch or launching a new product and the decision is made.